Note: On December 30, 2013, the CFTC issued two letters of no-action relief regarding annual compliance reports and duties of the Chief Compliance Officer. The first letter provides relief for swap dealers that: (1) are not required, prior to December 31, 2013, to register with the CFTC as swap dealers; and (2) have a fiscal year-end of December 31, 2013. (VIEW LETTER). The second letter provides relief to all futures commission merchants, swap dealers, and major swap participants concerning the deadline for furnishing a copy of the Annual Report to the CFTC. The no-action relief provided in that letter is limited to the Annual Report required to be furnished by such firms during calendar year 2014.[1] (VIEW LETTER)

Final Rule Summary

The final rule sets out the qualifications and duties of the CCO, and the required contents of the annual report that the CCO must file:

Qualifications include having the appropriate background to serve as CCO, to not be disqualified from membership, and must be listed as a "principal" of the SD/MSP.

Duties include establishing compliance policies, resolving of conflicts of interest, identifying noncompliance issues and establish procedures for the remediation of such noncompliance issues. All of the above duties (with the exception of ensuring compliance) are to be undertaken in consultation with the board of directors or the senior officer of the registrant.

Annual Report must contain a description of the registrant’s compliance, an assessment of the effectiveness of the registrant’s policies, a discussion of areas for improvement, a description of the resources set aside for compliance, and a description of any non-compliance issues identified and addressed.

Related Documents: Fact Sheet, Q&A, and Final Rule as it Appeared in the Federal Register